Legal Question in Tax Law in New Jersey

My Grandson inherited a CD as (POD) he is a nephew so in NJ he is a class "D" so he needs to pay 15% tax (my understanding). The bank said they need a NJ Tax waiver form to release funds because he is a nephew and I should go to my tax person to get it. I am confused on this process can you explain how it works and NJ get their 15%? Thanks you Nick


Asked on 6/21/21, 10:54 am

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

EXECUTOR MUST OBTAIN WAIVER FROM NJ INHERITANCE TAX DEPARTMENT. EXECUTOR MAY HAVE TO ADVANCE THE TAX AND BE REIMBURSED BY THE NEPHEW WHEN THE FUNDS ARE RELEASED, UNLESS (A) SOMEONE LIKE THE NEPHEW PAYS THE TAX OR (B) THE BANK WILL DEDUCT THE TAX FROM THE AMOUNT DUE THE NEPHEW.

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Answered on 6/22/21, 2:02 pm


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